VIEW ANSWER FOR PART TWO :
Economic Integration: Customs Unions and Free Trade Areas

a. lower-cost imports from outside the customs union are replaced by higher-cost imports from a union member

*b. some domestic production in a member nation is replaced by lower-cost imports from another member nation

c. trade among members increases but trade with nonmembers decreases

d. trade among members decreases while trade with nonmembers increases


 

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